Was reading this on the "Net, does anyone think that this is not accurate:
For home acquisition debt to continue to be grandfathered under the old rules of $1 million, the refinanced debt can only be for the amount of the old mortgage debt and for the remaining original debt term. There can be no cash taken out – even to cover closing costs. If the refinanced term is extended, the grandfathered portion ($1 million) only applies for the remaining years of the original loan term. Special rules apply if the original mortgage debt is not amortized over the life of the loan (i.e., has a balloon payment at the end).
For example: A home acquisition debt was taken out in 2010 for $1 million for 30 years and the outstanding balance of $850,000 is refinanced in 2018. If the refinanced debt term is 30 years, the $1 million limitation applies for the remaining 22 years.
Is this correct?